CHAPTER SEVEN Consumer Learning.

CHAPTER SEVEN Consumer Learning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Learning Objectives To Understand the Process and Four Elements of Consumer Learning. To Study Behavioral Learning and Understand Its Applications to Consumption Behavior. To Study Information Processing and Cognitive Learning and Understand Their Strategic Applications to Consumer Behavior. Here is an outline of the topics for Chapter Seven. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Learning Objectives (continued)
To Study Consumer Involvement and Passive Learning and Understand Their Strategic Affects on Consumer Behavior. To Understand How Consumer Learning and Its Results Are Measured. Here is an outline of the topics for Chapter Seven. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

These Ads Might Induce Learning Due to the Familiar Names
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Learning The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior This definition of learning can be looked at more specifically. It is important to realize that it is a process, that it changes over time as new knowledge and experiences are gained by the consumer. New knowledge and experience serve as feedback to the consumer and will influence their future behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Elements of Learning Theories
Unfilled needs lead to motivation Motivation Stimuli that direct motives Cues Consumer reaction to a drive or cue Response Increases the likelihood that a response will occur in the future as a result of a cue Reinforcement There are the four major elements of all learning theories. Motivation is important because it will differ from one consumer to the next. We may all have a need, but some are more motivated to fulfill the need versus another. Often, a consumer does not realize they have a need. A cue is the stimulus that helps direct a consumer’s motives. They include price, styling, packaging, advertising, and store displays. A consumer will have a response to a drive or a cue. The response is how the consumer behaves after being exposed to a cue or developing motivation. Finally, reinforcement is tied to the likelihood that the response will occur in the future. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Two Major Learning Theories
Behavioral Learning Based on observable behaviors (responses) that occur as the result of exposure to stimuli Cognitive Learning Learning based on mental information processing Often in response to problem solving These are the two general categories of learning that will be discussed in this chapter. Each is covered in extensive detail on future slides. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Behavioral Learning Classical Conditioning Instrumental (Operant) Conditioning In behavioral learning, it is classical conditioning and instrumental conditioning that are the two most researched, explored, and applied within consumer behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Classical Conditioning
A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone. Many of you may be familiar with Pavlov’s dog. In this situation, Pavlov sounded a bell, then applied meat paste to the dog’s tongue. Over time, the dog began to associate the bell with the meat paste. Eventually, when Pavlov rang the bell, the dog would salivate because he expected the meat paste to be applied. What happened was learning or conditioning. The dog learned that the meat paste, which is called the unconditioned stimulus, was associated with the bell, which is the conditioned stimulus. He began to have a conditioned response to the bell when he learned that the bell meant food. The experiment is provided in more detail on the following slide. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Models of Classical Conditioning Figure 7-2a
This is Pavlov’s experiment. As explained on the previous slide, the dog learned, was conditioned, to salivate from the bell after it was repeatedly paired with the unconditioned stimulus of the meat paste. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Figure 7-2b Here is another example of how classical conditioning might work. Why are dinner aromas an unconditioned stimulus? Why is salivation an unconditioned response? Do you often get hungry when you watch television? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Discussion Questions For Coca-Cola or another beverage company: How have they used classical conditioning in their marketing? Identify the unconditioned and conditioned stimuli, the conditioned and unconditioned response. Think about the advertisements for these ads. The smiling people and music. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Strategic Applications of Classical Conditioning
Basic Concepts Increases the association between the conditioned and unconditioned stimulus Slows the pace of forgetting Advertising wearout is a problem Repetition Stimulus generalization Stimulus discrimination For the association between the unconditioned and the conditioned stimuli to become strong, the exposure to the pairing must be repeated. In addition, the repetition is important so that the association is remembered by the subject. Of course, too much repetition can also be a problem. Think of the ad you have just seen so many times you feel like you can’t stand to see it again. This advertising wearout can be a big problem for advertisers, which is why they change their ads frequently. This web link is for a fun site which lists songs that have been used in advertisements. How are songs in ads an example of classical conditioning? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Why Did Gillette Use Two Different Ads to Advertise the Same Product?

Basic Concepts Having the same response to slightly different stimuli Helps “me-too” products to succeed Useful in: product extensions family branding licensing Repetition Stimulus generalization Stimulus discrimination Stimulus generalization is when a consumer applies a conditioned response to a stimulus that is not the same but is similar to a conditioned stimuli. An example you might recognize is when we react to someone in a certain way because they remind us of someone we know and have interacted with before. Stimulus generalization can be helpful as marketers extend their product line, product form, and product category. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Discussion Questions Stimulus Generalization
How does a pharmacy like CVS or Rite Aid use stimulus generalization for their private brands? Do you think it is effective? Should this be allowable? This web link will take you to CVS’ homepage. Pull up a common category such as pain reliever. If you compare the packaging of the store brand to the manufacturer’s brand, you will see similarities in the use of color, images, and wording. Is this effective in generalization? Does it help you move the positive thoughts of Tylenol brand to the store brand? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Stimulus Generalization

What Is the Name of the Marketing Application Featured Here and Which Concept of Behavioral Learning Is It Based On? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Product Category Extension Stimulus Generalization

Basic Concepts Selection of a specific stimulus from similar stimuli Opposite of stimulus generalization This discrimination is the basis of positioning which looks for unique ways to fill needs Repetition Stimulus generalization Stimulus discrimination Stimulus discrimination is closely linked to the concept of positioning. Marketers want you to think of their product differently than the rest when you are looking at the shelf in the grocery store. Using the example of the brand Tylenol, the manufacturer would want you to know that it is superior to the store brand. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Stimulus Discrimination Product Differentiation

Instrumental (Operant) Conditioning
A behavioral theory of learning based on a trial-and-error process, with habits forced as the result of positive experiences (reinforcement) resulting from certain responses or behaviors. Instrumental conditioning also requires a link between a stimulus and a response. The difference between this and classical conditioning is that the learned response is the one that is most satisfactory of responses. The famous psychologist B.F. Skinner is associated with this type of conditioning. He pointed out that learning occurs based on rewards. Through trial and error, consumers learn which behaviors lead to rewards and which do not. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

A Model of Instrumental Conditioning Figure 7.9
Here is a model of instrumental conditioning. You can see this consumer tried on four brands. The first three brands ended with no rewards – they simply did not fit. The final brand, Brand D gave the consumer the reward of a perfect fit. The consumer has learned that these jeans are a good fit and will likely repeat this behavior the next time they are in the stimulus situation of needing good-looking jeans. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Reinforcement of Behavior
Positive Positive outcome Strengthen likelihood Negative Negative outcome Encourages behavior The two types of reinforcement are positive and negative. It is important to realize that both of these influence responses. Positive reinforcement is a good thing that happens which rewards a behavior – going to the gym made you feel good so you go every other day. A negative outcome is a bad thing that happens which encourages a behavior. You ate a donut every morning for breakfast so gained a lot of weight over the past week. This causes you to go to the gym every other day and to stop eating donuts. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Reinforcement of Behavior
Extinction A learned response is no longer reinforced The link is eliminated between stimulus and reward Forgetting The reinforcement is forgotten Extinction and forgetting are easily confused. But think of what the words mean. If the response, is forgotten it can be brought back just by remembering. If it is extinct, it is unlearned. The link between the stimulus and the response is destroyed. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 29 Chapter Seven Slide

Strategic Applications of Instrumental Conditioning
Customer Satisfaction (Reinforcement) Reinforcement Schedules Shaping Massed versus Distributed Learning These are four applications of instrumental conditioning that are used by marketers. Customer satisfaction means that each time the customer has an experience with the product or company, there has been positive reinforcement. This is the reason relationship marketing is so important. Reinforcement schedules can vary. They can be total (or continuous) reinforcement, systemic (fixed ratio) reinforcement, or a random (variable ratio) reinforcement schedule. Marketers will often used random reinforcement as a bonus for the customer and fixed reinforcement as loyalty points or rewards. Shaping occurs by having the reinforcement BEFORE the behavior occurs. In this situation, the consumer can be given the offer of a reward before they actually make their decision and purchase a product. The final application is the choice of massed versus distributed learning. Should the learning and the exposure to the stimuli happen in a relatively short period of time or be drawn out? Media planners are often faced with this decision when putting together an advertising campaign. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Observational Learning (modeling or vicarious learning)
A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior Observational learning occurs NOT through responses directly to the consumer but by observation of the behavior and responses of others. Marketers often use role models in their advertising so that consumers can understand the rewards of purchasing the advertisers’ products. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Information Processing and Cognitive Learning
Learning involves complex mental processing of information Emphasizes the role of motivation This is a move away from the behavioral learning theories of classical and operant conditioning. Cognitive learning focuses on problem solving and consumer thinking. It is closely tied to information processing and how consumers store, retain, and retrieve information. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Information Processing and Memory Stores - Figure 7.10
The large blocks in this process are the three places where a consumer will store information before processing. The sensory store is very short term; it is where an image or sound will last for just a few minutes and then be forgotten. The short-term store is the stage where information is processed. Similarly to the sensory store, it is just held for a brief time. Information will move, through encoding, to the long-term store. Information here can last for relatively extended periods of time. Rehearsal, encoding, and retrieval move information from one place to the next. Rehearsal can be done either by repeating the information or relating it to other data. If held long enough, the information can be encoded, or given a word or visual image to represent the object. Retention, though not shown on this process chart, describes what happens with the information in long-term storage. As it is retained, it is constantly organized and reorganized. Finally, retrieval, the last stage of our process, describes how we recover information. Situational cues are the most common reason to retrieve information. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Discussion Questions How do advertisers drive consumers to rehearse information? When does this work against the advertiser? Can you think of examples of advertisements which drive you to rehearse? Think about advertisements you have seen, especially on television. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Theoretical Models of Cognitive Learning - Table 7.1
Generic Framework Promotional Model Tricompetent Model Decision-Making Model Innovation Adoption Model Innovation Decision Process Knowledge Attention Cognitive Awareness Knowledge Awareness Knowledge Evaluation Interest Desire Affective Evaluation Interest Evaluation Persuasion Behavior Action Conative Purchase Postpurchase Evaluation Trial Adoption Decision Confirmation These are the major models of cognitive learning that have been developed over the years. Although they have different terms, they follow the same three stages of knowledge, evaluation, and behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Involvement and Passive Learning Topics
Definitions and Measures of Involvement Marketing Applications of Involvement Central and Peripheral Routes to Persuasion Hemispheral Lateralization and Passive Learning These are the four major topics of involvement and passive learning. They will be covered more thoroughly on the following slides. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Involvement Degree of personal relevance that the product or purchase holds for that customer. High involvement purchases are very important to the consumer Low-involvement hold little relevance, have little perceived risk, and have limited information processing Involvement is focused on the personal relevance a product holds for an individual. Understanding whether a product is high or low involvement helps the marketer with all aspects of their planning and strategy. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Measuring Involvement with an Advertisement - Table 7.3
Subjects respond to the following statements on a 7-point Likert scale ranging from “Strongly Agree” to “Strongly Disagree.” The message in the slogan was important to me The slogan didn’t have anything to do with my needs The slogan made me think about joining the military The slogan made me want to join the military While reading the slogan, I thought about how the military might be useful for me The slogan did not show me anything that would make me join the military I have a more favorable view of the military after seeing the slogan The slogan showed me the military has certain advantages The slogan was meaningful to me The slogan was worth remembering Involvement has been defined in many different ways, which leads to no single clear measurement test for involvement. This table was used in measuring military recruitment slogans. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 38 Chapter Seven Slide

Marketing Applications of Involvement
Ads in video games Avatars Sensory appeals in ads to get more attention Forging bonds and relationships with consumers Marketers want consumers to be involved with their brands and products. Advertisers are always searching for ways to do this, including the list on this slide. Product placement is also helpful in building involvement with a certain product. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Central and Peripheral Routes to Persuasion
Central route to persuasion For high involvement purchases Requires cognitive processing Peripheral route to persuasion Low involvement Consumer less motivated to think Learning through repetition, visual cues, and holistic perception When a product is of high importance, a consumer is likely to think through the advertising and examine details and information. This is the central route to persuasion. On the other hand, if the purchase is lower involvement, the consumer is more likely to be persuaded by music, pictures, and short slogans in the ads. This is the peripheral route to persuasion, which we often see for low-involvement products, especially on television advertising. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Hemispheral Lateralization and Passive Learning
Also called split-brain theory Left Brain Rational Active Realistic Right Brain Emotional Metaphoric Impulsive Intuitive Most of you know whether you tend to be more right or left brain. The ad on the next slide pokes fun at hemispheral lateralization but makes the point that many products and services have to appeal to both sides of the brain. There are researchers who prove that learning occurs in a passive way from watching television. A consumer sees an ad and it is absorbed and processed by the right brain. Through repeated exposure, the consumer could in fact purchase the product without even having a change in their attitude. This contradicts the models we saw in an earlier slide where changes in affect preceded changes in behavior. If you think about it, this is consistent with classical conditioning. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 41 Chapter Seven Slide

The Ad is Targeted to the Right Brain

Measures of Consumer Learning Brand Loyalty
Recognition and Recall Measures Brand Loyalty Recognition and recall tests determine whether consumers remember seeing an ad and the extent to which they can recall the ad. The researcher can use aided recall, which would rely on recognition as opposed to unaided recall. There are a number of services which conduct these tests, including Starch Research which you can reach with the web link on this page. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 46 Chapter Seven Slide

Measures of Consumer Learning Brand Loyalty
Three groups of factors Personal degree of risk aversion or variety seeking The brand’s reputation and availability of substitutes Social group influences Four types of loyalty No loyalty Covetous loyalty Inertia loyalty Premium loyalty Brand loyalty is also a measure of consumer learning. Ideally, it is the outcome of learning where the consumer now knows the best choice to make each time. Brand loyalty includes attitudes and behaviors toward the brand. Behavior measures are observable whereas attitudinal measures are concerned with the consumers’ feelings about the brand. On this chart, we see an integrated conceptual framework which views loyalty as a function of three factors or influences upon the consumer. These three factors can lead to the four types of loyalty including no loyalty, covetous loyalty, which is no purchase but a strong attachment to the brand, inertia loyalty, which is purchasing the brand out of habit or convenience with no attachment, or premium loyalty, which is a high attachment to the brand. Brand equity reflects brand loyalty and together they lead to increased market share and greater profits for the firm. Brand Equity – the value inherent in a well-known brand name Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

CHAPTER SEVEN Consumer Learning.

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